General Motors quarterly sales get boost from strong SUV demand - Reuters

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July 1 (Reuters) - U.S. automaker General Motors Co (GM.N) on Thursday posted a 40% jump in second-quarter U.S. sales on strong demand for its sport utility vehicles (SUVs), and said the trend will continue into 2022.

Low interest rates, government stimulus and a preference for private vehicles due to the COVID-19 pandemic have bolstered auto demand in the United States, even as prices have risen due to tight inventories following a global semiconductor shortage.

Consumers are purchasing more expensive vehicles despite smaller discounts, boosting profitability for automakers and retailers, according to industry consultants J.D. Power and LMC Automotive. read more

GM said its Chevrolet Bolt EV posted record second-quarter deliveries with total Chevrolet deliveries up 31%, while sales of its Buick's premium SUVs soared 86%.

"The U.S. economy is accelerating, consumer spending is robust and jobs are plentiful," GM Chief Economist Elaine Buckberg said in a statement.

"Consumer demand for vehicles is also strong, but constrained by very tight inventories."

Shares of the U.S. automaker were up 0.6% at $59.49 in morning trade as its U.S. auto sales jumped to 688,236 vehicles in the quarter.

"I'm not worried though as the demand is there and the economy is rebounding. Plus it appears the worst of the chip shortage for autos will be Q2 so things should recover from here," Morningstar analyst David Whiston said.

Reporting by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi and Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles.

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